When to short and long puts in delta hedging?

CFA Level II
#1

I’m looking at CFAI Reading 53: Options #5c in CFAI book.

Is there an omission of market price of puts in the question?

How do you know when to short and long?

I know:

When you long puts you must also long shares

When you short puts you must also short shares

#2

Draw the payoff pictures; you want the payoff on your options to be moving in the opposite direction of the payoff on your stock:

  • Long stock, short calls
  • Long stock, long puts
  • Short stock, long calls
  • Short stock, short puts